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Explain The Place Of An Accounting Information System Organizations
For speeding up business functions and processes the organizations needed advance clouding computerized software’s that support in speeding up accounting and other business operations in the company and through finishing up and solving the unresolved and complex accounting tasks. From the analysis of the differences in the features and the functionality of the SAP and Oracle cloud-based accounting system it is revealed that Oracle is a better option for the Ahalife Holdings Limited because through the Oracle system the company attains better supply chain, CRM, budgeting and accounting operations that support them to attain high future growth.
By implementing Oracle the company also not need to incur high cost for making it customized for the company and for hiring special staff to operate it. The operations of the accounting are also done in a better manner with less time. Therefore, Oracle is the best choice for Ahalife Holdings Limited Company to implement.
In today business world the accounting and the reporting practices are measured as an essential function of the central finance that plays an essential role in the corporation. This is moreover subdivided into the functions like payables and receivable management. For speeding up these functions and processes the organizations needed advance clouding computerized software’s that support in speeding up accounting and other business operations in the company and through finishing up and solving the unresolved and complex accounting tasks. They also support in order to attain the goals of the vigorous workflow along with comprehensive control over company financial final cycle (D.M.J.Wickramsainghe, et al., 2017). The use of the clouding accounting software’s in the businesses not merely saves the time because most of the work done automatically but also saves the company cost because by this less error occur and the company does not require a high amount of staff that perform different operations. As by automation, one employee becomes able to handle many accounting and business operations effectively that support the sustainable growth of the business. This show how companies benefit from the cloud accounting software’s, but it’s essential for the companies to select the best software that matches their business operations and objectives (Olatunji, 2013). So, in this report as the consultant in the management consultancy firm, we evaluate the best accounting system for our client that is Ahalife Holdings Limited whose CEO thinks about investing in the cloud-based accounting system that supports their future business growth. So, in this assignment, we select two cloud-based accounting software packaged vendors and explain their functions and features and make comprise between them for selecting the best accounting system option for the company.
Background of Ahalife Holdings Limited
The company from the list of the Australia that is selected for this Assignment is Ahalife Holdings Limited that online retail company exist in Australia. The company through their online based platform offered the premium lifestyle and designed goods to the consumers. Through the company, the customers become able to purchase products directly from the community of above 4300 globally top-quality designers and artisans products. The business model of the company is the direct drop-ship approach between the customers and the designers of the products, avoiding the requirement for the distribution and the storage of the inventory of the products and the other related inventory risk (AHAlife Holdings, 2019).
The company allow the users to shop the global most innovative and unique artisans and designers products through just one click on the website. The company is the curated place for discovering almost 4000 plus artisans and the designer’s products in 45 plus countries. The company major business process is to scour the world to find the quality, exceptional objects for each of the single aspect of the user’s life. The company aim is to promote the creativity as the company recognized this fact all over the world the generation of the artisan’s skills and the creative solutions are rapidly losing that might affect the future of the world. So, based on this the company develop their online platform that supporting the independent designers and the artisans of the world to compete effectively with the large companies, expand their business scale, gain high exposure and connect with the individuals easily through only registering in the company website. The company offered the registered independent designers and the artisan’s products to the customers that promote their businesses. The company is empowering the innovators, designers and the artisans to flourish online by treasuring and purchasing their exclusive creations. The company understand that the lives of the people become busy and they don’t have time to discover the innovative designer products that improve their living style. The company also believed in the low buying power and better buying. So, with the help of this online platform of the company the customers become able to purchase the unique products of the artisans and the designers at the reasonable prices. The company supply chain process is effective as they do not store the products at their warehouse when the company attains the orders from the customers they contact with the designers and the artisans and they deliver the products directly from their place this support the company to attain high efficiency at low-cost operations (Corporation, 2019)
As the company deals in the e-commerce business where the quality of the service, process speed and the management is much important for retaining and appealing the customers that are important for their sustainable growth. The company need the effective operational management that supports them to offer high quality of the service that they promised and without any issue of delivery. As the company does not send the products directly to customers, so they do not have chance to inspect the quality of the products for this they need systems that ensure that the designers and suppliers send the product at the high quality and on time so that no issue occur that affect the business growth. The company also need the software for different operations like effective supply chain management, accounting operations, communication and engagement with customers and designers/artisans, customer’s relationship management, inventory management and the handling of the budgeting policy and approaches of the company for their efficient future operation movement (AHAlife Holding Limited, 2019).
Outline the software’s features and the functionalities that Ahalife Holdings Limited should consider to support its business activities and both vendor description
For the company for efficient operations, they have to use the cloud accounting software. As the consultant for Ahalife Holdings Limited the two accounting software that we compare for suggesting the best one option for the company are SAP and the Oracle software. Both of these are the market leaders and the best providers of the cloud accounting system in the world that most of the leading companies in the world also uses for their high growth and operational efficiency in the market. SAP is the essential tool that allows for the real-time management and tracking of the finance, accounting, sales and the human resource. SAP software handled the processes like accounting, sales and production independently. SAP software ensures that the application will not interrelate with their own network as was done traditionally but must interrelate with the other processes for the occurrence of the tangible business proceedings. On the other side, Oracle is the object-relational database management system which comes from an enormous Oracle Corporation. The Oracle focus highly on how the financial data of the company moves internally in the organization (Oracle, 2014). Oracle and the SAP systems differ in that way that the SAP is established of the complex software for allowing the multiple business assimilation whereas Oracle system comes as the ORDBMS whose implementation in the enterprise environmental setting is possible. The data management operation is possible with the use of the oracle whereas the real time process management of the business is possible with the help of SAP (David, 2018).
Software comparison and contrast their Features/functionalities
There exist many differences between these two systems in term of their features and the functionalities that are evaluated for selecting the best one software that the company will implement for their operational efficiency.
It is seen that the SAP system provides the set of tools in order to facilitate the flow of the information in the business. Whereas the Oracle is the multi-model management system. SAP is the database along with the applications whereas Oracle is just the database and has no applications. The functional areas of the SAP system include sales, accounting, distribution etc. When we see the functional areas of the oracle, it is seen that its functional areas include the database workloads, transaction processing, and the data warehousing. The implementation cost of the SAP system is also considerably higher as compared to the oracle and also required specialized staff to be hired to operate it that raise the operating cost of the company (EDUCBA, 2019)
Numerous of the businesses in the world complain that the SAP system is highly hard to tailor or customize without the external assistance and consulting. For this business required to an involved large amount of the IT specialist and pay the support personnel of SAP to make a system work according to the specific need of the business that enhances operating cost and also disturb business operations somehow. On the opposite of it Oracle system has developed the pluggable structural design that uses the open standards of the industry. It’s the greater advantage of the Oracle system that makes this system relatively easy and efficient for the companies to customize and integrate according to their business needs. Even the small corporations can tailor and deploy the Oracle system at the affordable prices (VIP Quality Software, Ltd, 2019).
Time to implement
According to the analysts, Oracle cloud accounting software takes less time to implement as compared to SAP. Approximately 51 man-hours are required for implementing the Oracle where SAP required 93 hours for implementation. This show that implementation life cycle of Oracle system is almost half of the SAP. Because of this feature, Oracle is better for the company because by this their operations less disturbed because of less implementation time (VIP Quality Software, Ltd, 2019).
Both the system the SAP and the Oracle has the efficient financial and accounting management capabilities. The features like the account receivable, the account payable and the management of the fixed asset all link with the perfect score. But Oracle system copes with succeeding in this classification because of the few aspects. Oracle attains a slightly better score in the risk management process. The Oracle offers the reliability reporting and the improved management of finance and ties in with the GRC requirement. Oracle tools support to prevent from the issues like cask leakage and reduce risk. The SAP tools of the risk management are also good but not better than Oracle (O'Shaughnessy, 2019)
Oracle system score in term of budgeting is also higher than SAP system because of SAP use relatively basic budgeting while Oracle with the tool of asset life cycle management ensures better budgeting (O'Shaughnessy, 2019)
The advance pricing techniques of Oracle make it better than SAP. The Oracle change the company base prices for matching with the market segment, exchange rate and the currency etc. Oracle also manages the rebates, discounts profit margins through utilizing the set guidelines (O'Shaughnessy, 2019).
Customer relationship management
Both systems are good in CRM but have some weaknesses and strengths in diverse areas. The Oracle does well crossways the board; however, it is not excellent at it. Oracle is good in the market support that offers the company the ability for managing its campaign on the single network. SAP is also good in it but not as much as Oracle is.
Supply chain and inventory management
Oracle is better in supply chain and inventory management as it allows the businesses to track the costs and allocate the resources more proficiently. The Oracle also provides a more updated stock level record that supports better inventory management (O'Shaughnessy, 2019)
In HR management SAP is far better than Oracle because it allows the users to access the critical information quickly and easily that support the management decisions efficiency (O'Shaughnessy, 2019).
Identification of the most suitable vendor and accounting software package for the company
From the analysis of the differences in the features and the functionality of the SAP and Oracle cloud-based accounting system it is revealed that Oracle is a better option for the Ahalife Holdings Limited because through the Oracle system the company attains better supply chain, CRM, budgeting and accounting operations that support them to attain high future growth. By Oracle, the marketing of the company also improves along with accounting data recording and analysis so that the company attains high benefit from it. By implementing Oracle the company also not need to incur high cost for make it customized for the company and for hiring special staff to operate it. The company time also saves that they need to incur for implementing the system and also their productivity boosted by the use of Oracle. The operations of the accounting are also done in a better manner with less time. So, Oracle is the best choice for Ahalife Holdings Limited Company to implement.
It is concluded that The use of the clouding accounting software’s in the businesses not merely saves the time because most of the work done automatically but also saves the company cost because by this less error occur and the company does not require a high amount of staff that perform different operations. From the comparison of the two software’s SAP and Oracle, it is better for the Ahalife Holdings Limited Company to use Oracle because by this along with operational efficiency their operating cost reduction and time also saves that incurred in working and implementing of the system.
AHAlife Holding Limited, 2019. Company Manifesto. [Online]
Available at: https://www.ahalife.com/about
AHAlife Holdings, 2019. About Us. [Online]
Available at: http://www.ahalifeholdings.com.au
Corporation, A., 2019. Company opearions. [Online]
Available at: https://www.ahalife.com/about
D.M.J.Wickramsainghe, Pemarathna, R., Cooray, N. & Dissanayake, T., 2017. Impact of accounting software for Business Performance. Imperial Journal of Interdisciplinary Research, 3(5).
David, 2018. Difference between Sap and Oracle. [Online]
Available at: http://www.differencebetween.net/technology/software-technology/difference-between-sap-and-oracle/
EDUCBA, 2019. SAP vs Oracle. [Online]
Available at: https://www.educba.com/sap-vs-oracle/
Olatunji, T., 2013. The Impact Of Accounting System On The Performance Of SmallAnd Medium Scale Enterprises In Nigeria – A Survey Of SME’s In Oyo State-Nigeria. International Journal of Business and Management Invention, 2(9), pp. 13-17.
Oracle, 2014. Oracle Database In-Memory. [Online]
Available at: https://www.oracle.com/assets/dbim-vs-sap-hana-2215625.pdf
O'Shaughnessy, K., 2019. SAP vs Oracle. [Online]
Available at: https://selecthub.com/enterprise-resource-planning/oracle-erp-vs-sap-erp/
VIP Quality Software, Ltd, 2019. Enterprise Resource Planning Software: SAP vs Oracle Comparison. [Online]
Available at: http://www.centriqs.com/smallbusiness/sap-vs-oracle.php
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